Q3 2024 Viant Technology Inc Earnings Call

November 12, 2024

Hello, everyone and welcome to buying technologies third quarter 2024 earnings Conference call. My name is Catherine and I'll be your operator today.

Before I hand, the call over to buy ins leadership team I'd like to go over just a few housekeeping notes for the program.

As a reminder, this call is being recorded after the Speakers' remarks, there will be a question and answer session. If you plan to ask a question. Please ensure that you've set your zoom named to display your full name and firm.

If you would like to ask a question. During this time. Please use the raise hand function located at the bottom of your screen.

Thank you for your attendance today.

Speaker Change: I will now call turn the call over to Nick Zingler VP of Investor Relations for <unk>.

Nick Zingler: Thank you Catherine good afternoon, and welcome to buying technologies third quarter 2024 earnings Conference call. All the call today are Tim Vanderhoof, co founder and Chief Executive Officer, Chris Vanderhoef, Co founder and Chief operating Officer, and Larry Madden Chief Financial Officer.

Speaker Change: I'd like to remind you that we will be make forward looking statements on our call today, including but not limited to our guidance for Q4 2020 for our platform development initiatives and industry trends that are based on assumptions and subject to future events risks and uncertainties that could cause actual results to differ materially.

Speaker Change: From those projected.

Speaker Change: These forward looking statements speak only as of today and we undertake no obligation to update or revise these statements except as required by law for more information about factors that may cause actual results to differ materially from forward looking statements and our entire safe Harbor statement. Please refer to the news release issued today.

Speaker Change: <unk> as well as the risks and uncertainties described in our quarterly report on Form 10-Q for the quarter ended September 30th 2024 under the heading risk factors and in our other filings with the SEC.

Speaker Change: During today's call. We will also present, both GAAP and non-GAAP financial measures additional disclosures regarding these non-GAAP measures, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release issued today and in our earnings presentation, which have been posts.

Speaker Change: On the Investor Relations page of the Companys website and in our filings with the SEC.

Speaker Change: I would now like to turn the call over to Tim Vanderhoof, Chief Executive Officer of Bio <unk> Tim.

Tim Vanderhoof: Thanks, Nick and thanks, everyone for joining US today, we had a fantastic third quarter with results well ahead of our guidance across all key metrics.

Tim Vanderhoof: Once again, we achieved a new quarterly record for platform spend while revenue and contribution ex Tac grew 34% and 21% respectively year over year. We also delivered record Q3, adjusted EBITDA of $14 $7 million.

Tim Vanderhoof: I'm also very excited to discuss our acquisition of Iris TV, which we announced earlier today Iris TV is a content identification platform built for connected TV, which provides a global content IV across connected TV applications I will expand.

More on the Iris announcement in a moment.

Tim Vanderhoof: The strength, we saw in the third quarter is further demonstration that <unk> product suite and overall value proposition for advertisers continues to resonate with customers.

Thank you Catherine good afternoon, and welcome to buying technologies third quarter 2024 earnings Conference call.

Tim Vanderhoof: Our focus on enabling advertisers to buy programmatic advertising and smarter and more efficient ways is continuing to drive incremental spend to our platform.

On the call today are Tim Vanderhoof, co founder and Chief Executive Officer.

Chris Vanderhoof, co founder and Chief operating Officer, and Larry Madden, Chief Financial Officer, I'd like to remind you that we will be make forward looking statements on our call today, including but not limited to our guidance for Q4 2020 for our platform development initiatives and industry trends that are based on assumptions.

Tim Vanderhoof: Our rollout of buy in AI, which we first announced on our Q2 earnings call is garnering notable attention from our customers prospects and industry partners across the programmatic landscape.

Tim Vanderhoof: We believe our commitment to innovation and customer success, because it positions us extremely well to continue growing our market share and capitalize on the ever expanding market for programmatic advertising.

And subject to future events risks and uncertainties that could cause actual results to differ materially from those projected.

These forward looking statements speak only as of today and we undertake no obligation to update or revise these statements except as required by law for more information about factors that may cause actual results to differ materially from forward looking statements and our entire safe Harbor statement. Please refer to the news release issued today.

Tim Vanderhoof: I'll spend some time today digging further into our vision for buying AI. How this is translating into better tools for advertisers and how this is driving spend through our platform and growth for buying.

Tim Vanderhoof: There's been a lot of thought and investment across the tech industry as a whole in terms of how generative AI can really benefit and users of software and applications.

<unk> as well as the risks and uncertainties described in our quarterly report on Form 10-Q for the quarter ended September 32024 under the heading risk factors and in our other filings with the SEC.

Tim Vanderhoof: Some businesses have turned this AI euphoria into real solutions for users, while others are still figuring out how to exactly and effectively incorporate AI into their product roadmaps.

During today's call. We will also present, both GAAP and non-GAAP financial measures additional disclosures regarding these non-GAAP measures, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release issued today and in our earnings presentation, which have been posted.

At <unk>, we believe AI is transforming the programmatic AD industry as a whole we believe this new AI enabled era and programmatic is as monumental as the movement 20 years ago from licensed software to cloud based software as a service models.

On the Investor Relations page of the Companys website and in our filings with the SEC.

I would now like to turn the call over to Tim Vanderhoof, Chief Executive Officer of Bio <unk> Tim.

Tim Vanderhoof: Which has since completely changed the software industry.

Tim Vanderhoof: Thanks, Nick and thanks, everyone for joining US today, we had a fantastic third quarter with results well ahead of our guidance across all key metrics.

Tim Vanderhoof: At <unk>, we have created via AI, which is transforming every aspect of programmatic ad buying.

Tim Vanderhoof: AI is the first fully autonomous advertising software platform driven by the powerful capabilities of generative AI.

The user interface of the platform is extremely intuitive and enables any individual within an agency or marketing org as an organization to plan and buy complex programmatic campaigns without any prior experience or training.

Tim Vanderhoof: I'm also very excited to discuss our acquisition of Iris TV, which we announced earlier today.

Tim Vanderhoof: Via an AI work straight out of the box and advertisers can see results of their campaign planning strategies immediately with limited effort upfront.

Tim Vanderhoof: Iris TV is a content identification platform built for connected TV, which provides a global content.

Tim Vanderhoof: Across connected TV applications, I will expand more on the Iris announcement in a moment.

Tim Vanderhoof: We believe via an AI is especially transformative and that enables the whole agency not just programmatic traders to use the software to plan campaigns.

Tim Vanderhoof: The strength, we saw in the third quarter is further demonstration that <unk> product suite and overall value proposition for advertisers continues to resonate with customers.

Tim Vanderhoof: Everyone within an organization from C level executives down to strategy and planning teams can now interface with our platform and contribute to the planning buying and measurement of programmatic campaigns in real time.

Tim Vanderhoof: Our focus on enabling advertisers to buy programmatic advertising and smarter and more efficient ways is continuing to drive incremental spend to our platform.

Tim Vanderhoof: In addition to the speed and ease of use via an AI brings an additional level of sophistication to the campaign planning process.

Tim Vanderhoof: Our rollout of <unk>, AI, which we first announced on our Q2 earnings call is garnering notable attention from our customers prospects and industry partners across the programmatic landscape.

Leveraging years of data from thousands of campaigns executed through our platform by an AI is faster smarter and more precise and its planning capabilities compared to traditional planning software.

Tim Vanderhoof: The AI generated campaign strategies have gone through extensive testing with a number of experienced advertising customers and the reactions have been universally positive.

Speaker Change: I'll spend some time today digging further into our vision for by an AI. How this is translating into better tools for advertisers and how this is driving spend through our platform and growth providing.

Tim Vanderhoof: Often with the proposed plans recommending strategies that even experienced professionals themselves might not have considered.

Tim Vanderhoof: We expect by an AI to accelerate our market share gains and expand our total addressable market.

Speaker Change: There's been a lot of thought and investment across the tech industry as a whole in terms of how generative AI can really benefit and users of software and applications.

For major agency holding companies and national advertisers via an AI provides substantial workflow and operational efficiencies along with improved return on AD spend across executed ad campaigns.

Speaker Change: Some businesses have turned this AI euphoria into real solutions for users.

Speaker Change: Others are still figuring out how to exactly and effectively incorporate AI into their product roadmaps.

And for the 10 plus million small to midsize businesses actively marketing across search and social advertising the simplicity and ease of use offered by via an AI provides an opportunity to participate in open internet programmatic advertising in a way that has not been possible and.

Speaker Change: At <unk>, we believe AI is transforming the programmatic AD industry as a whole we believe this new AI enabled era and programmatic is as monumental as the movement 20 years ago from licensed software to cloud based software as a service models.

Tim Vanderhoof: Now <unk>.

Tim Vanderhoof: <unk> AI democratizes programmatic advertising, enabling any advertiser to market their product or service to any household in the U S.

Speaker Change: Which has since completely changed the software industry.

Speaker Change: At <unk>, we have created via AI, which is transforming every aspect of programmatic ad buying.

Tim Vanderhoof: While we are still in the very early stages of the launch and rollout of ion AI. We're extremely excited about the long term prospects of what our AI can do for advertisers and their agencies.

Speaker Change: AI is the first fully autonomous advertising software platform driven by the powerful capabilities of generative AI.

Tim Vanderhoof: The more campaigns that are run through our platform the more our AI model will learn and adapt to customer preferences and campaign performance overtime.

Speaker Change: The user interface of the platform is extremely intuitive and enables any individual within an agency or marketing org as an organization to plan and buy complex programmatic campaigns without any prior experience or training.

Tim Vanderhoof: And we are already releasing updates and enhancements to buy in AI, which are expanding its capabilities we.

Speaker Change: By an AI work straight out of the box and advertisers can see results of their campaign planning strategies immediately with limited effort upfront.

Tim Vanderhoof: We see a significant opportunity to add deeper integrations more robust analysis and enhanced capabilities to name a few.

Tim Vanderhoof: And we expect our ongoing innovation will keep buying AI at the forefront of the AI Revolution.

Speaker Change: We believe via an AI is especially.

Speaker Change: Actually transformative and that enables the whole agency not just programmatic traders to use the software to plan campaigns.

Switching topics today, we are thrilled to announce the acquisition of Iris TV, a leader and solving a critical challenge within the connected TV ecosystem.

Speaker Change: Everyone within an organization from C level executives down to strategy and planning teams can now interface with our platform and contribute to the planning buying and measurement of programmatic campaigns in real time in.

Tim Vanderhoof: The Iris team has developed an exceptional platform that addresses the lack of standardization in video content and signals across content producers TV Oems video apps and programmatic resellers in issue that has long created operational.

Speaker Change: In addition to the speed and ease of use via an AI brings an additional level of sophistication to the campaign planning process.

Speaker Change: Leveraging years of data from thousands of campaigns executed through our platform by an AI is faster smarter and more precise and its planning capabilities compared to traditional planning software.

Tim Vanderhoof: Pnc's in the industry.

Tim Vanderhoof: At the core of their innovation is the Iris IV, our proprietary global content identifier seamlessly integrated into the open RTD midstream.

Speaker Change: The AI generated campaign strategies have gone through extensive testing with a number of experienced advertising customers and the reactions have been universally positive.

Tim Vanderhoof: The Iris I E is an anonymous universal identifier that allows advertisers to go beyond targeting at the CTV app level, enabling precise targeting down to the individual video file where their ads will run all in a privacy compliant manner.

Speaker Change: Often with the proposed plans recommending strategies that even experienced professionals themselves might not have considered.

Speaker Change: We expect by an AI to accelerate our market share gains and expand our total addressable market.

Tim Vanderhoof: Beyond this iris enriches the Iris IV with powerful data driven insights, including contextual segments emotional sentiment analysis and brand suitability data.

Speaker Change: For major agency holding companies and national advertisers via an AI provides substantial workflow and operational efficiencies along with improved return on AD spend across executed ad campaigns.

Tim Vanderhoof: This added layer of context provides advertisers with a richer understanding of the videos are accompanying their ads empowering safer smarter and more impactful CTV ad campaigns.

Speaker Change: And for the 10 plus million small to midsized businesses actively marketing across search and social advertising the simplicity and ease of use offered by <unk> AI provides an opportunity to participate in open internet programmatic advertising in a way that has not been possible.

Tim Vanderhoof: By combining irises cutting edge technology with our DSP, we are poised to elevate the CTV channel to new heights, making it safer more transparent and more effective for advertisers.

Speaker Change: Until now.

Speaker Change: Irises mission to enhance the value of premium CTV content aligns perfectly with our vision for the future and we are excited to partner with their team to lead the industry at the intersection of CTV AI and AD Tech.

Speaker Change: <unk> AI democratizes programmatic advertising, enabling any advertiser to market their product or service to any household in the U S.

Speaker Change: While we are still in the very early stages of the launch and rollout of buying AI. We're extremely excited about the long term prospects of what our AI can do for advertisers and their agencies.

Speaker Change: We have an opportunity to lead the industry into a new era of programmatic advertising, where AI drives every aspect of the process, making it more accessible scalable and efficient for advertisers of all sizes.

Speaker Change: The more campaigns that are run through our platform the more our AI model will learn and adapt to customer preferences and campaign performance overtime.

Speaker Change: While we aren't looking to eliminate humans from the process. We're excited to make individuals' more efficient and effective at their jobs with the help of AI and continue to increase return on AD spend for our customers.

Speaker Change: And we are already releasing updates and enhancements to buy in AI, which are expanding its capabilities.

Speaker Change: We see a significant opportunity to add deeper integrations more robust analysis and enhanced capabilities to name a few.

Speaker Change: We are at a pivotal time as advertisers pushing the AI and at the same time are looking for alternatives to the largest <unk> in the market.

Speaker Change: We expect our ongoing innovation will keep buying AI at the forefront of the AI Revolution.

Speaker Change: We have always offered the most cutting edge technology to advertisers and the acquisition of Iris TV will widen our lead when it comes to connected TV.

Speaker Change: Switching topics today, we are thrilled to announce the acquisition of Iris TV a leader in solving a critical challenge within the connected TV ecosystem.

Speaker Change: This focus on innovation led growth has created the strongest pipeline of customer demand, we have seen in our history and continues to drive record spend on our platform as a result.

Speaker Change: The Iris team has developed an exceptional platform that addresses the lack of standardization in video content signals across content producers TV Oems video apps and programmatic resellers in issue that has long created operational.

Speaker Change: We arent, taking this opportunity lightly and are committed to expand upon our already award winning platform to make programmatic ad buying easier and more effective while delivering market, leading innovation to our customers with that I'll turn it over to Chris.

Speaker Change: <unk> in the industry.

Speaker Change: At the core of their innovation is the Iris I'd, our proprietary global content identifier seamlessly integrated into the open RTD bid stream the.

Chris Vanderhoef: Thanks, Tim the success, we saw in Q3 was driven by our ongoing focus on innovation and investments in the fast growing areas of programmatic, notably CTV and streaming audio while we are beginning to see notable contributions from our via an AI product suite.

Speaker Change: The Iris I'd is an anonymous universal identifier that allows advertisers to go beyond targeting at the CTV app level, enabling precise targeting down to the individual video file where their ads will run all in a privacy compliant manner.

Chris Vanderhoef: CTV spend across our platform remains very strong and was up nearly 50% year over year in the quarter, while streaming audio continued to see strong double digit growth.

Speaker Change: Beyond this iris enriches the IRA side with powerful data driven insights, including contextual segments emotional sentiment analysis and brand suitability data.

Chris Vanderhoef: These channels together represented approximately 50% of spend on our platform in the quarter consistent with what we saw in Q2.

Chris Vanderhoef: Many of the things that we have highlighted in recent quarters have continued to drive spend growth on our platform <unk>.

Speaker Change: This added layer of context provides advertisers with a richer understanding of the videos are accompanying their ads.

Chris Vanderhoef: Direct access provides clients with access to the world's most premium content, eliminating non value add middleman and enabling walled garden level addressable <unk> by targeting logged in CTV users with our household IV.

Speaker Change: Powering safer smarter and more impactful CTV ad campaigns.

Speaker Change: By combining irises cutting edge technology with our DSP, we are poised to elevate the CTV channel to new heights, making it safer more transparent and more effective for advertisers.

We continue to see strong adoption of our direct access program as more than half of our CTV spend came through direct access in the quarter.

As advertisers are increasingly seeing the value of incorporating premium CTV content into their omnichannel programmatic campaigns.

Chris Vanderhoef: We regularly hear from our clients that direct access combined with the scale of our household IV is one of our biggest competitive differentiators.

Chris Vanderhoef: We recently hosted a very successful direct access CTV event in New York with a number of our publisher and media partners to discuss our CTV continues to accelerate and its strategic importance for advertisers.

Chris Vanderhoef: We had a number of participants from across the industry join in the conversation and we heard insightful perspectives from some of our agency partners along with senior executives from the likes of Disney Paramount and NBC.

Speaker Change: While we arent looking to eliminate humans from the process, we're excited to make individuals' more efficient and effective at their jobs with the help of AI and continue to increase return on AD spend for our customers.

Chris Vanderhoef: The overarching takeaway from the event was that CTV is becoming increasingly clear.

Chris Vanderhoef: Is becoming an increasingly critical channel for advertisers as they are shifting more budgets into CTV and away from linear.

Speaker Change: We are at a pivotal time as advertisers pushing the AI and at the same time, we're looking for alternatives to the largest <unk> in the market.

Chris Vanderhoef: <unk>, which we expect will only further accelerate.

Speaker Change: While CTV as a whole is generally recognized as a high value channel due to its targeting address ability and measurement capabilities. We're excited to be adding even more contextual intelligence and targeting sophistication to our CTV offering with the acquisition of Iris TV, which Tim mentioned just earlier.

Speaker Change: We have always offered the most cutting edge technology to advertisers and the acquisition of Iris TV will widen our lead when it comes to connected TV.

Speaker Change: Iris is heavily invested into their technology to build out the distribution of their global content IV for CTV called the Iris IV.

Speaker Change: We arent, taking this opportunity lightly and are committed to expand upon our already award winning platform to make program. Okay.

The Iris ideas now integrated with an impressive network of CTV content owners TV OEM platforms and over 1400 content management systems, who are currently building on top of the Iris I E.

Speaker Change: These integrations will enable <unk> to enhance our direct access program by making the Iris IV available to our marketers.

Speaker Change: As Tim mentioned that marketers are still in the very early stages of CTV buying most CTV buying is done by just targeting the app name.

Speaker Change: The problem with this is that marketers are not able to easily target specific types of content and they can't measure which types of content drives the best results. This is where the Iris IV comes in.

Speaker Change: Iris ingest millions of CTV content files and normalizes all of the metadata associated with that video. So marketers have a standard taxonomy to target against in CTV, regardless of what app or platform that videos consumed it.

Marketers Love Dubai data, driven advertising and the Irish <unk> enables them to see which video within our CTV App is driving better return on AD spend from there marketers will then bid up the price of those high performing videos, resulting in content owners getting higher CPM.

Speaker Change: For example, Carl's Junior was recently looking to reach younger adult males, who are watching anime content and certain titles of video game content and our CTV campaign car.

Speaker Change: Carl's junior leverage the Iris I D to easily buy this content and programmatic across a range of CTV apps and platforms by using the Iris IV the.

Speaker Change: The results were amazing as the campaign leveraging the Iris IV generated a 300% lift in AD recall.

Speaker Change: <unk>, 35% lift in incremental store visits.

Speaker Change: A staggering 152% lift in incremental sales.

Speaker Change: CK restaurants, CMO, Jennifer stated that they're always looking for strategies that drive business outcomes at scale and that Iris TV delivers a unique combination of targeting ability contextual relevance and high ROI.

Becoming increasingly.

It's becoming an increasingly critical channel for advertisers as they are shifting more budgets into CTV and away from linear.

Speaker Change: We think that the virus is an important part of the mission for the open ecosystem and CTV in particular.

A trend, which we expect will only further accelerate.

Speaker Change: We believe that the Iris IV will enable content owners to create more compelling AD products that will rival the walled gardens and ultimately increase the share of spend tilting back to the open ecosystem.

While CTV as a whole is generally recognized as a high value channel due to its targeting address ability and measurement capabilities. We're excited to be adding even more contextual intelligence and targeting sophistication to our CTV offering with the acquisition of Iris TV, which Tim mentioned just earlier.

Speaker Change: We're really excited to further develop this technology and expand <unk> reach to deliver best in class CTV products for our customers and the industry.

We believe that with the addition of Iris TV to our already robust direct access program for CTV VI. It is becoming the DSP of choice for advertisers looking to spend more in CTV.

Yeah.

Iris is heavily invested into their technology to build out the distribution of their global content I'd for CTV called the Iris I'd.

The Iris ideas now integrated with an impressive network of CTV content owners TV OEM platforms and over 1400 content management systems, who are currently building on top of the Iris I E.

Speaker Change: Our customers have seamless access to much of the market's most premium inventory and through our direct access program are able to buy CTV at better pricing compared to the rest of the industry.

These integrations will enable <unk> to enhance our direct access program by making the Iris IV available to our marketers.

Speaker Change: Coupled with our advancements and measurement and reporting our customers are driving superior returns on their AD spend through the <unk> platform.

Speaker Change: As Tim mentioned today marketers are still in the very early stages of CTV buying most CTV buying is done by just targeting the afternoon.

Speaker Change: Another major appeal for our customers is that we are making programmatic advertising much easier and effective to use through our advanced suite of AI enabled products as Tim discussed we are still in the very early innings of the via an AI rollout, but initial receptivity has been overwhelmingly positive and our go to market effort around the product.

Speaker Change: Has been extremely effective.

Speaker Change: In mid September we released a 12 minute launched video across a number of social media channels to showcase <unk> media planning capabilities.

Speaker Change: The video garnered over 150000 views in just the first couple of days post launch and has driven over 500 early access sign ups.

Speaker Change: Marketers love to buy data driven advertising and the Iris IV enables embassy which video within our CTV App is driving better return on AD spend from their marketers will then bid up the price of those high performing videos, resulting in content owners getting higher CPM.

Speaker Change: We have already begun enabling access to many of our current customers and the response has been incredible many customers are generating high impact media plans in seconds, which is saving them countless hours and the early customers are seeing campaigns that are generating better performance.

Tim Vanderhoof: For example, Carl's Junior was recently looking to reach younger adult males, who are watching anime content and certain titles of video game content and Theyre CTV campaign.

Speaker Change: And on the point of efficiency and return on AD spend AI bidding, formerly known as that Optimizer is a key product within bias within the AI portfolio. We're just continuing to garner strong adoption from our customer base approximately 90% of our customers are currently leveraging the product which is delivering cigna.

Tim Vanderhoof: Carl's junior leveraged the Iris I'd to easily buy this content and programmatic across a range of CTV apps and platforms by using the Iris I E. The.

Tim Vanderhoof: The results were amazing as the campaign leveraging the RFID generated a 300% lift in AD recall of 35% lift in incremental store visits and a staggering 152% lift in incremental sales.

Speaker Change: Difficult cost savings to our customers through our AI driven bidding technology.

Speaker Change: With the official launch of our end to end by AI platform, we have AI powered tools that drive better efficiency across the four key areas of programmatic ad buying.

Speaker Change: CK restaurants, CMO, Jennifer <unk> stated that Theyre always looking for strategies that drive business outcomes at scale, and then Iris TV delivers a unique combination of targeting ability contextual relevance and high ROI.

Speaker Change: Planning bidding measurement and Decisioning.

Speaker Change: With the enthusiasm behind this new product rollout, our engineering and sales teams are firing on all cylinders and we are poised to continue growing our market share into 2025 MBR.

Speaker Change: We think that the virus is an important part of the mission for the open ecosystem and CTV in particular.

Speaker Change: We are seeing a number of positive indications across our business that give us confidence in our opportunity with by an AI.

Tim Vanderhoof: We believe that the Iris idea will enable content owners to create more compelling AD products that will rival the walled gardens and ultimately increase the share of spend tilting back to the open ecosystem.

Speaker Change: First we are having more meaningful discussions with larger brands.

Speaker Change: While our sweet spot has always been with mid market agencies and brands, we see an opportunity to move up market and partner and partner with larger advertisers given the ease of use and improving efficiency, we offer through by AI.

Tim Vanderhoof: We're really excited to further develop this technology and expand <unk> reach to deliver best in class CTV products for our customers and the industry.

Tim Vanderhoof: We believe that with the addition of Iris TV to our already robust direct access program for CTV Vine is becoming the DSP of choice for advertisers looking to spend more in CTV.

Speaker Change: Also these larger brands that are leaning in to buy have historically defaulted to the leg legacy industry players.

Speaker Change: But now with the recent Google AD Tech monopoly trial, and the rising negative sentiment with the trade desk. They are taking a look at alternative options in the market and buying as frequently becoming an alternative these larger brands are turning to.

Tim Vanderhoof: Our customers have seamless access to much of the market's most premium inventory and through our direct access program are able to buy CTV at better pricing compared to the rest of the industry.

Speaker Change: Second we are continuing to expand our partner network with larger and more influential partners in the programmatic ecosystem and finally, we believe our full suite of VI AI products expands our addressable market by enabling us to serve a larger customer base. Although we are currently winning with larger brands today.

Speaker Change: Coupled with our advancements and measurement and reporting our customers are driving superior returns on their AD spend through the <unk> platform.

Speaker Change: Another major appeal for our customers is that we are making programmatic advertising much easier and effective to use through our advanced suite of AI enabled products as Tim discussed we are still in the very early innings of the <unk> rollout, but initial receptivity has been overwhelmingly positive and our go to market effort around the product.

Speaker Change: We believe that products like via and AI will ultimately attracts the millions of smaller advertisers that are currently combined confined to search and social media channels.

Speaker Change: <unk> been extremely effective.

Speaker Change: We believe we can help the open ecosystem creates superior AD products that compete with the walled gardens for market share.

Speaker Change: In mid September we released a 12 minute launched video across a number of social media channels to showcase <unk> media planning capabilities.

We are extremely excited about our progress and look forward to announcing more updates via AI in the near future.

Speaker Change: The video garnered over 150000 views in just the first couple of days post launch.

Speaker Change: With that I'll turn it over to Larry to provide more detail on our financial performance Larry.

Speaker Change: Driven over 500 early access sign ups.

Larry Madden: Thanks, Chris before I begin I'd like to remind everyone that we've posted a presentation to our investor Relations website that includes supplemental financial information to accompany the company todays call.

Larry Madden: We had a very strong third quarter, surpassing our guidance across the board and setting a new high watermark with record spend on our platform in the quarter.

Speaker Change: And on the point of efficiency and return on AD spend AI bidding, formerly known as that Optimizer is a key product within <unk> within the by AI portfolio, which is continuing to garner strong adoption from our customer base approximately 90% of our customers are currently leveraging the product.

Larry Madden: CTV has been a consistent bright spot for us in Q3 was no exception.

Larry Madden: We once again achieved record levels of CV CTV spend on our platform with CTV spend growing nearly 50% in the quarter.

Speaker Change: Which is delivering significant cost savings to our customers through our AI driven bidding technology.

Larry Madden: Streaming audio also showed continued strength delivering solid double digit growth in the quarter.

Speaker Change: With the official launch of our end to end by AI platform, we have AI powered tools that drive better efficiency across the four key areas of programmatic ad buying.

Larry Madden: Together CTV and streaming audio accounted for approximately 50% of spend on the platform in Q3 and remain our fastest growing channels.

Speaker Change: Planning bidding measurement and Decisioning.

The strong adoption of <unk> is also driving notable incremental revenue and contribution ex Tac.

Prime example of this is AI bidding in the quarter AI bidding achieved record breaking revenue and contribution ex Tac with revenue and contribution ex Tac growing 35% across both metrics on a quarter over quarter basis, while seamless simultaneously, providing substantial cost savings for our customers.

Speaker Change: We are seeing a number of positive indications across our business that give us confidence in our opportunity with by NII.

Speaker Change: First we are having more meaningful discussions with larger brands.

Larry Madden: A clear win win outcome.

Larry Madden: In terms of customers on a trailing 12 month basis through Q3, we've seen impressive growth in the number of customers generating significant contribution ex Tac <unk>.

Speaker Change: Also these larger brands that are leaning into buying has historically default into the legacy industry players.

Larry Madden: Specifically the number of percentage of spend customers generating over 500000 and over $1 million in contribution ex Tac each grew by nearly 30% year over year.

In the quarter contribution ex Tac across our 100 largest customers also grew by nearly 30%.

Larry Madden: We are equally encouraged by the rapid expansion of our new customer base. The top 30 customers added over the past year generated on average more than $400000 of contribution ex Tac during the period.

Speaker Change: Second we are continuing to expand our partner network with larger and more influential partners in the programmatic ecosystem and finally, we believe our full suite of AI products expands our addressable market by enabling us to serve a larger customer base. Although we are currently winning with larger brands today.

Larry Madden: These strong customer trends, both from existing and new customers position us extremely well to continue outpacing overall market growth.

Speaker Change: We believe that products like <unk> and AI will ultimately attracts the millions of smaller advertisers that are currently combined combined to search and social media channels.

Speaker Change: With that I'll now turn to the results for the third quarter.

Speaker Change: Revenue for the quarter was $79 $9 million, an increase of 34% versus the prior year period and exceeding the upper end of our guidance range by more than 10% sequentially.

Speaker Change: We believe we can help the open ecosystem creates superior AD products that compete with the walled gardens for market share.

Sequentially revenue increased 21% from Q2.

Speaker Change: We are extremely excited about our progress and look forward to announcing more updates via AI in the near future.

Speaker Change: This impressive growth the growth was partially driven by several new customers onboarding and initiating their use of the platform during the quarter.

Speaker Change: With that I'll turn it over to Larry to provide more detail on our financial performance Larry.

Speaker Change: In these instances, we typically provide an increased level of service given the customers are new to the platform, which in turn triggers gross revenue accounting further driving our revenue growth rate relative to our growth and contribution ex Tac.

Speaker Change: We had a very strong third quarter, surpassing our guidance across the board and setting a new high watermark with record spend on our platform in the quarter.

Speaker Change: Contribution ex tax for the quarter was 47 4 million increasing 21% from the same period last year and also above the high end of our guidance range compared to Q2 contribution ex Tac increased 14%.

CTV has been a consistent bright spot for us in Q3 was no exception.

Speaker Change: Notably Q3 marks our fifth consecutive quarter of 20% year over year growth and contribution ex Tac.

Speaker Change: We once again achieved record levels of CV CTV spend on our platform with CTV spend growing nearly 50% in the quarter.

Speaker Change: I would also point out that the 21% growth in contribution expect this quarter was achieved despite being measured against 22% growth in the prior year period, demonstrating strong performance against a more challenging comparison.

Speaker Change: Streaming audio also showed continued strength delivering solid double digit growth in the quarter.

Speaker Change: Together CTV and streaming audio accounted for approximately 50% of spend on the platform in Q3 and remain our fastest growing channels.

Speaker Change: In terms of customer verticals, our mix remained relatively steady in Q3 with health care consumer goods travel and automotive representing the biggest areas of growth for us.

Speaker Change: The strong adoption of buying to AI is also driving notable incremental revenue and contribution ex Tac.

Speaker Change: Prime example of this is AI bidding in the quarter AI bidding achieved record breaking revenue and contribution ex Tac with revenue and contribution ex Tac growing 35% across both metrics on a quarter over quarter basis, while simultaneously, providing substantial cost savings for our customers.

Speaker Change: Political in the quarter. It was slightly ahead of our expectations of 2% to 3% of contribution ex Tac indicative of ongoing shifts in AD spend to programmatic platforms addressable audiences in CTV.

Speaker Change: China why CTV remains a cornerstone of our growth strategy in Q3, CTV reached a new record with spend growing nearly 50% year over year, an acceleration from the 40% growth in Q2 and represented over 40% of total platform spend.

A clear win win outcome.

Speaker Change: In terms of customers on a trailing 12 month basis through Q3, we've seen impressive growth in the number of customers generating significant contribution ex Tac <unk>.

Speaker Change: Specifically the number of percentage of spend customers generating over 500000 and over $1 million in contribution ex Tac each grew by nearly 30% year over year.

Speaker Change: Dreaming audio which is also a strategic growth area achieved another record of solid.

Speaker Change: Double digit year over year growth as the channel continues to scale.

Speaker Change: In the quarter contribution ex Tac across our 100 largest customers also grew by nearly 30%.

Speaker Change: Our customers continue leveraging our household IV technology to execute their omnichannel campaigns across across these two high engagement cookie less channels.

Speaker Change: We are equally encouraged by the rapid expansion of our new customer base. The top 30 customers added over the past year generated on average more than $400000 of contribution ex Tac during the period.

Speaker Change: In terms of formats video, which includes CTV was again more than 60% of total spend on our platform in the quarter.

Speaker Change: These strong customer trends, both from existing and new customers position us extremely well to continue outpacing overall market growth.

Speaker Change: Turning now to operating expenses for the quarter, our non-GAAP operating expenses totaled $32 7 million in Q3, representing a 11% year over year increase and 2% sequentially.

Speaker Change: With that I'll now turn to the results for the third quarter.

Speaker Change: Revenue for the quarter was $79 $9 million, an increase of 34% versus the prior year period and exceeding the upper end of our guidance range by more than 10%.

We remain focused on making strategic investments in our business, specifically around our technology and AI initiatives to best position ourselves for long term term market share gains and increasing profitability.

Speaker Change: Sequentially revenue increased 21% from Q2.

Speaker Change: As we invest we also remain hyper focused on driving efficiencies internally and to that end, we have been able to increase contribution ex Tac per employee for nearly 20% over the past 12 months.

This impressive growth growth was partially driven by several new customers onboarding and initiating their use of the platform during the quarter.

Speaker Change: For the third quarter, we generated record adjusted EBITDA of $14 7 million above the high end of our guidance and representing an increase of 52% over the prior year period.

Speaker Change: Contribution ex tax for the quarter was $47 4 million, increasing 21% from the same period last year and also above the high end of our guidance range compared to Q2 contribution ex Tac increased 14%.

Speaker Change: Notably Q3 represents our seventh consecutive quarter of adjusted EBITDA growth of over 40%.

Speaker Change: Adjusted EBITDA margin as a percentage of contribution ex Tac was 31% for the quarter an improvement of six percentage points from the prior year period, and eight percentage points from the prior quarter.

Speaker Change: Notably Q3 marks our fifth consecutive quarter of 20% year over year growth and contribution ex Tac.

Speaker Change: <unk>.

For the third quarter GAAP net income totaled $6 5 million, which compares to a GAAP net loss of $672000 in the prior year period.

Speaker Change: GAAP earnings per class a share was <unk> <unk> in the third quarter, which compares to a GAAP loss per class a share of <unk> in the prior year period.

Speaker Change: In terms of customer verticals, our mix remained relatively steady in Q3 with health care consumer goods travel and automotive representing the biggest areas of growth for us.

Speaker Change: non-GAAP net income, which excludes stock based compensation and other items totaled $12 3 million for the quarter, which compares to non-GAAP net income in the prior year period of $7 6 million, representing an improvement of 61% year over year.

Speaker Change: Political in the quarter was slightly ahead of our expectations of 2% to 3% of contribution ex Tac indicative of ongoing shifts in AD spend to programmatic platforms addressable audiences in CTV.

Speaker Change: non-GAAP earnings per class a share totaled 15 in the third quarter, which compares to eight cents in the prior year period.

Speaker Change: In terms of share count we ended the quarter with $63 1 million shares outstanding consisting of $16 2 million class a shares and $46 9 million class B shares.

And represented over 40% of total platform spend.

Speaker Change: Streaming audio which is also a strategic growth area achieved another record of solid.

Speaker Change: We ended the quarter with $214 $6 million in cash and cash equivalents, we had $232 million of positive working capital and no debt at quarter end and we continue to have access through $75 million Undrawn credit facility.

Speaker Change: Double digit year over year growth as the channel continues to scale.

Speaker Change: Our customers continue leveraging our household IV technology to execute their omnichannel campaigns across across these two high engagement <unk> channels.

Speaker Change: In Q3, we also generated $17 $1 million of cash flow from operations and $12 $4 million of free cash flow.

Speaker Change: In terms of formats video, which includes CTV was again more than 60% of total spend on our platform in the quarter.

Speaker Change: Since the inception of our share repurchase program in early May 2024, we repurchased a total of one 4 million shares of class a common stock using $14 2 million in cash through November as well.

Turning now to operating expenses for the quarter, our non-GAAP operating expenses totaled $32 7 million in Q3, representing 11% year over year increase and 2% sequentially.

Speaker Change: We have $35 $8 million remaining on our $50 million authorized repurchase program.

Speaker Change: We remain focused on making strategic investments in our business, specifically around our technology and AI initiatives to best position ourselves for long term term market share gains and increasing profitability.

Turning now to our outlook for the fourth quarter of 2024, we currently expect revenue in the range of $82 million to $85 million, representing a year over year increase of 30% in a quarter over quarter increase of 4% at the midpoint.

As we invest we also remain hyper focused on driving efficiencies internally and to that end, we have been able to increase contribution ex tac per employee by nearly 20% over the past 12 months.

Speaker Change: Contribution ex Tac is expected to be in the range of $51 million to $53 million, representing a year over year growth of 22% and quarter over quarter growth of 10% at the midpoint.

Speaker Change: For the third quarter, we generated record adjusted EBITDA of $14 7 million above the high end of our guidance and representing an increase of 52% over the prior year period.

Speaker Change: In Q4, we expect political to be similar to Q3 as a percent of total contribution ex Tac.

Speaker Change: non-GAAP non-GAAP operating expenses expected to be between 35, and $36 million, representing a year over year increase of 20% in a quarter over quarter increase of 9% at the midpoint we.

Speaker Change: Notably Q3 represents our seventh consecutive quarter of adjusted EBITDA growth of over 40%.

Speaker Change: We expect adjusted EBITDA to be in the range of $16 million to $17 million, which represents a year over year increase of 27% and a quarter over quarter over quarter increase of 12% at the midpoint.

Speaker Change: <unk>.

Speaker Change: For the third quarter GAAP net income totaled $6 5 million, which compares to a GAAP net loss of $672000 in the prior year period.

Speaker Change: And finally, we expect an adjusted EBITDA margin as a percentage of contribution ex Tac of 32% at the midpoint.

Speaker Change: GAAP earnings per class a share was <unk> <unk> in the third quarter, which compares to a GAAP loss per class a share of <unk> in the prior year period.

Speaker Change: Based on the midpoint of our Q4 guide we now expect full year 2020 for revenue growth of 27% contribution ex Tac growth of 22% and adjusted EBITDA growth of 51%.

Speaker Change: I do want to point out that the impact of the Iris TV acquisition is reflected in our Q4 guidance given.

Speaker Change: Given the timing of the acquisition of Iris CV and the relatively small size of the business Iris TV is expected to have limited impact on our Q4 operating results.

Speaker Change: non-GAAP earnings per class a share totaled 15 in the third quarter, which compares to eight cents in the prior year period.

Speaker Change: As Tim and Chris mentioned Iris represents a strategic investment and further enhancing our suite of CTV targeting and measurement capabilities, which we believe can lead to longer term growth opportunities.

Speaker Change: In terms of share count we ended the quarter with $63 1 million shares outstanding consisting of $16 2 million class a shares and $46 9 million class B shares.

Speaker Change: Okay.

Speaker Change: We ended the quarter with $214 $6 million in cash and cash equivalents, we had $230 2 million of positive working capital and no debt at quarter end and we continue to have access through $75 million Undrawn credit facility.

Speaker Change: In closing, we look forward to finishing out 2024 on a high note and are extremely encouraged by the numerous tailwind is driving our growth.

Speaker Change: Our messaging and value proposition around violence, AI is clearly resonating with advertisers and driving interest in Spanish and the <unk> platform and an overwhelmingly positive rate and you can see it in the customer metrics I spoke to earlier.

In Q3, we also generated $17 $1 million of cash flow from operations and $12 $4 million of free cash flow.

Speaker Change: We are very well positioned to capitalize on the strong growth of high value channels, such as CTV and streaming audio and are committed to making our customers spanned across all channels, even more efficient and effective.

Speaker Change: We look forward to continuing to build on this momentum as we move into 2025.

Speaker Change: We have $35 $8 million remaining on our $50 million authorized repurchase program.

And with that I will now turn it back over to the operator to open the call for questions operator.

Speaker Change: Turning now to our outlook for the fourth quarter of 2024, we currently expect revenue in the range of $82 million to $85 million, representing a year over year increase of 30% in a quarter over quarter increase of 4% at the midpoint.

Speaker Change: Thank you we will now take this time to move into our Q&A portion of our call today.

Speaker Change: Our first question comes from Laura Martin from Needham Go ahead Laura.

Laura Martin: Okay can you hear me okay, yes.

Laura Martin: I don't know if I can turn on my picture, but anyway okay.

Laura Martin: So I have two.

Laura Martin: The first one is it.

Speaker Change: In Q4, we expect political to be similar to Q3 as a percent of total contribution ex Tac.

Laura Martin: If I remember right.

Laura Martin: You grew that let me call it gross spend by 34%.

Speaker Change: non-GAAP non-GAAP operating expense was expected to be between 35 and $36 million, representing a year over year increase of 20% in a quarter over quarter increase of 9% at the midpoint.

Laura Martin: Ex Tac number by 21% the Tac went through the roof.

Speaker Change: It looks to me like it was about 95% of the fixed price revenue, which begs. The question Larry is my math, right and B, Chris and Tim why are we in a business, where we give away 95% of the topline.

Speaker Change: I'm lost as to why we're doing fixed price if 95% of it is a contract count.

Speaker Change: Larry you want to take it.

Larry Madden: It's not 95%.

Speaker Change: And finally, we expect an adjusted EBITDA margin as a percentage of contribution ex Tac of 32% at the midpoint.

Larry Madden: And as I said on the.

Larry Madden: The prepared remarks, it really had to do with a handful of new customers that we're providing services for that we ultimately had a book accounting gross.

Speaker Change: Based on the midpoint of our Q4 guide we now expect full year 2020 for revenue growth of 27% contribution ex Tac growth of 22% and adjusted EBITDA growth of 51%.

Larry Madden: Put it in perspective, if you do let's say $5 million of incremental growth in the quarter, that's about 9% incremental revenue growth in the quarter. So again, we're focused certainly on the on the <unk>, which is what we keep.

Speaker Change: I do want to point out that the impact of the Iris TV acquisition is reflected in our Q4 guidance given.

Larry Madden: We don't have a 5% margin on our managed service side of the services side of our business.

Speaker Change: Given the timing of the acquisition of Iris CV and the relatively small size of the business Iris TV is expected to have limited impact on our Q4 operating results.

Larry Madden: And the good news about this this particular instances it's brand new customers that are expanding quite heavily within a given quarter.

Larry Madden: Okay. So the reason that we are in the fixed price business is because this is a metric for new customers new logo wins, that's how we should take this.

Larry Madden: You go back it's how we onboard customers you usually start some fixed price and then we moved the percent of spend it shortens the sales cycle to get them in the door.

Speaker Change: In closing, we look forward to finishing out 2024 on a high note and are extremely encouraged by the numerous tailwind is driving our growth.

Speaker Change: Okay, Alright, so that's that's a good number of them because it's up 51%. Okay and then my other question is.

Speaker Change: Our messaging and value proposition around <unk> AI is clearly resonating with advertisers and driving interest in spend to the <unk> platform and an overwhelmingly positive rate and you can see it in the customer metrics I spoke to earlier.

Speaker Change: What I think about your growth drivers is it if I try to rank them is it that this is Brian to AI, which sounds awesome is that the core driver here or is it that youre getting more spending from existing clients or are you getting new clients are as direct access the core driver.

Speaker Change: If it was 50% it was actually 40% of total spending on the platform like I'm trying to sort of sort out of the growth drivers, which ones are driving the most growth and which ones are not.

Speaker Change: We look forward to continuing to build on this momentum as we move into 2025.

And with that I will now turn it back over to the operator to open the call for questions operator.

Speaker Change: Yes, So let me just start so it is a cohort driven model the longer that we retain customers each year, we retain theyre spending more and more each.

Speaker Change: Thank you we will now take this time to move into our Q&A portion of our call today.

Speaker Change: Every year their own platform.

Speaker Change: Our first question comes from Laura Martin from Needham Go ahead Glen.

Speaker Change: So I think with the scale of our customer size I think in terms of total dollars much of the growth a lot of the growth is existing customers scaling their spend thats, probably one a sub all of that would be them moving more and more money into CTV as we have better products to market in CTV, they're choosing to spend those dollars with volume versus competitors.

Speaker Change: Okay.

Speaker Change: Okay can you hear me okay.

Speaker Change: I don't know if I can turn on my picture, but anyway okay.

Speaker Change: So I have two.

Speaker Change: The first one is <unk>.

Speaker Change: I remember right.

Speaker Change: And direct access is squarely in that because it's direct accesses is centered on CTV.

Speaker Change: You grew that lending high gross spend by 34%.

Speaker Change: Ex Tac number by 21% the Tac went through the roof.

Speaker Change: And then I would say, we're doing really really well with new customers as you as Larry was just highlighting the new new customers were onboarding and I would say that a lot of that certainly is.

Speaker Change: It looks to me like it was about 95% of the fixed price revenue, which begs the question and Larry is my math right and D.

Speaker Change: The attention around by NII since we rolled that out that certainly has been there.

Speaker Change: Chris and Jim why are we in a business, where we give away 95% of the topline guidance.

Speaker Change: I'm lost as to why we're doing fixed price is 95% of it is a contract cap.

Speaker Change: So I think we're continuing to do well on all those fronts.

Speaker Change: Fantastic Great numbers you guys. Thanks for taking the questions. Thank you. Thanks a lot.

Speaker Change: Larry you want to take the.

Speaker Change: It's not 95%.

Thank you and our next question will be from Jason <unk> from Craig Hallum.

Speaker Change: And as I said on the.

Speaker Change: Prepared remarks, it really had to do with a handful of new customers that we were providing services for that we ultimately at a book accounting growths.

Speaker Change: Your line is open.

Speaker Change: You guys hear me, Yes, Hey, Jason.

Speaker Change: Great. Thank you too.

Speaker Change: To put it in perspective, if you do let's say $5 million of incremental growth in the quarter, that's about 9% incremental revenue growth in the quarter. So again, we're focused certainly on the <unk>, which is what we keep.

Speaker Change: Two questions on Iris TV. So first Chris you had talked about how this helps you create an alternative to walled gardens. So just curious if you can give more details around around the concept there and then just wanted to better understand.

Speaker Change: We don't have a 5% margin on our managed service side of the services side of our business.

Excuse me understand if theres interoperability between the Iris I D. In the household I D. I think how you can peg those two together going forward great.

And the good news about this this particular instances it's brand new customers that are pretty expanding quite heavily within a given quarter.

Speaker Change: Yes, I think if you take a look at Mehta, who I believe is a leader in.

Speaker Change: Okay. So the reason that we are in the fixed price businesses. Because this is a metric for new customers new logo wins, that's how we should take this.

Speaker Change: <unk>.

Speaker Change: Making ads that are relevant to the content, you're consuming let's say in reals.

Speaker Change: We see this in other platforms like ticks off but what Theyre doing is customizing the AD, they're using AI to customize adds to match the content not only just the genre what the content is about.

Speaker Change: You go back it's how we onboard customers, who usually start some fixed price and then we moved the percent of spend it shortens the sales cycle to get them in the door.

Okay, Alright, so that's that's a good number of them because it's up 51%. Okay and then my other question is.

Speaker Change: Making the add very similar to the content. It's the contextual relevance that theyre able to provide that we believe is was really boosting their ads business. They used to be only about identity and that was why people work with let's say Facebook, but today. It really is because of their capabilities in understanding the content and then making.

Speaker Change: What I think about your growth drivers is if I try to rank them is it that this is Brian to AI, which sounds awesome is that the core driver here or is it that youre getting more spending from existing clients or are you getting new clients are as direct access the core driver.

Speaker Change: <unk> is very relevant to that content.

Do you think about Cte today most of the market is just buying CTV ads, it's money from linear shifting into <unk>.

Speaker Change: Streaming and really they are just buying apps, it's I'm going to choose to buy Paramount or Disney and Warner Brothers discovery, whatever it may be.

Speaker Change: Yes, So let me just start so it is a cohort driven model the longer that we retain customers each year, we retain theyre spending more and more each.

Speaker Change: It's because it's still early innings in the CTV landscape now we believe that IRS.

Speaker Change: Their unique connection point is is with publishers.

Every year they are on our platform. So I think with the scale of our customer size I think in terms of total dollars much of the growth a lot of the growth is existing customers scaling their spend thats, probably one a sub all of that would be them moving more and more money into CTV as we have better products to market in CTV, they're choosing to spend those dollars.

Speaker Change: The platforms like the TV Oems and device manufacturers as well as content management systems. All of those entities are sending their video files to Iris and Iris is then breaking down that that video file and providing contextual relevance than to the buy side to be able to customize the ads.

Speaker Change: With volume versus competitors and direct access is squarely in that because it's direct accesses is centered on CTV.

So then they match the content an easy example would be as if.

Speaker Change: A piece of content was about fishing, you could easily natural cabela's ad or a bass pro shops add with that that's an easy example.

Speaker Change: And then I would say, we're doing really really well with new customers as you as Larry we're just highlighting the new new customers were onboarding and I would say that a lot of that.

Speaker Change: We see that the performance boosted in CTV by matching add to content.

Speaker Change: Certainly as.

Speaker Change: The attention around by NII since we rolled that out that certainly has been there.

Speaker Change: If you look at the Carl's Junior example, we give the results are through the roof and it makes a lot of sense, we think that theres a lot more advancements that we can help bring.

Speaker Change: So I think we're continuing to do well on all those fronts.

Speaker Change: Fantastic Great numbers you guys. Thanks for taking the questions. Thank you. Thanks a lot.

Speaker Change: To the Iris offering and to our customers. So we're really excited about it.

Speaker Change: Thank you and our next question will be from Jason <unk> from Craig Hallum.

Speaker Change: On the second question, Jason just around is there future of Iris I D and vines household idea and how do those work together, we do see those two things playing together what Iris I'd gives you is data about the content and its structured many ways contextual emotional sentiment.

Speaker Change: Your line is open.

Speaker Change: Can you guys hear me, yes, Hey, Jason.

Speaker Change: Great. Thank you.

Speaker Change: Brand suitability for an advertiser, who doesn't want to advertisers if there's nudity in a show or something like that so it's a whole bunch of extra data that is about the content via household I D.

Speaker Change: Up there and then just wanted to better understand.

Speaker Change: Excuse me understand if theres interoperability between the Iris I'd in the household.

Speaker Change: His data about the household products they've purchased what their I guess purchase intent is and we do see Iris I'd and household I'd being used in combination in the future. They can be used separately, but certainly theres strength when you put both of those together.

Speaker Change: How you can take those two together going forward. Thanks.

Speaker Change: Right.

Yes, I think if you take a look at Mehta, who I believe is a leader in and making ads that are relevant to the content you're consuming let's say in reals.

Speaker Change: Perfect. Thank you guys. Thanks, Jason.

Speaker Change: Certainly see this in other platforms like ticks off but what they are doing is customizing. The AD. They are using AI to customize adds to match the content not only just the genre what the content is about.

Speaker Change: Thank you and our next.

<unk> will be from Matt Conlan.

Speaker Change: From JMP.

Speaker Change: Matt Your line is open.

Speaker Change: Yeah.

Speaker Change: Thank you so much for taking my questions. My first one is just on IRS as well just trying to think about just the contextual signals that you guys are receiving from that and may be incorporating that into your AI better. If there is opportunity there to just enhance your bidding capabilities with the signal that you're receiving from Iris absolutely.

Speaker Change: Making the add very similar to the content. It's the contextual relevance that theyre able to provide that we believe is whats really boosting their ads business. They used to be only about identity and that was why people work with let's say Facebook, but today. It really is because of their capabilities in understanding the content and then makes.

Speaker Change: Absolutely one you mentioned it with AI bidding.

Speaker Change: Ads very relevant to that content.

Speaker Change: Really if you today when we receive a signal, let's say from a certain <unk>.

Speaker Change: If you think about Cte today most of the market is just buying CTV ads, it's money from linear shifting into.

Speaker Change: From a content owner, we're just receiving predominantly the app name and maybe we might get genre or publisher, what's known as publisher provided metadata, but you don't really know what the show is you don't know what its about you don't know the actors in it you don't know the setting you don't know the mood.

Speaker Change: Streaming and really they are just buying apps, it's I'm going to choose by Paramount or Disney and Warner Brothers discovery, whatever it may be.

Speaker Change: It's because it's still early innings in the CTV landscape now, we believe that IRS, where their unique connection point is is with publishers.

Speaker Change: And so with IRS they really enable.

Speaker Change: To enable all of that data to flow through about the content. When a marketer. If you think of a publisher like Disney I think of the size of their library, you don't know exactly which video you may be buying and with IRS you know much more about the content. So if a marketer in the example, I gave earlier around bass pro shops knows of this video.

Speaker Change: So which is about fishing.

Speaker Change: Does that performs extremely well the next time I see that same video file that same iris I'd come across variable, they're then able to build that up because they understand the performance increase that that video actually provides them. This is where we really see as a huge opportunity for CTV content owners, but also for the marketers and one other point too.

Speaker Change: So then they match the content an easy example would be.

Speaker Change: A piece of content was about fishing, you could easily match, a cabela's ad or a bass pro shops add with that that's an easy example.

Speaker Change: We see that the performance boost in CTV by matching add to content is if you look at the Carl's Junior example, we get the results are further roof and it makes a lot of sense, we think theres a lot more advancements that we can help bring.

Speaker Change: We really this is in partnership with the content owners and we believe that CTV.

Speaker Change: Is the open ecosystems greatest channel and we want to bolster these content owners to help them create better AD products to rival those of the walled gardens in search and social. So this is why we think this acquisition is really important yeah and just on the question just a follow up on that around bidding it's not just driving price down it's also <unk>.

Speaker Change: To the Iris offering and to our customers. So we're really excited about it.

Speaker Change: On the second question, Jason just around is there future of Iris I'd and buying household idea and how do those work together, we do see those two things playing together what Iris I'd gives you is data about the content and its structured many ways contextual emotional sentiment.

Driving price up where theres a lot of customers for that advertiser to be able to make sure. We're engaging those audiences too. So we see that yes, it could drive pricing down, but we're just seeing more bids in general when this content signal is in place.

Speaker Change: Brand suitability for an advertiser, who doesn't want to advertisers if theres nudity in a show or something like that so it's a whole bunch of extra data that is about the content buying household I'd.

Speaker Change: Great. That's Super helpful. And then my second one is just on vine AI and you guys talking about that unlocking the long tail of advertisers.

Speaker Change: His data about the household what products. They purchased what they are I guess, a purchase intent is and we do see Iris I'd and household I'd being used in combination in the future. They can be used separately, but certainly theres strength when you put both of those together.

Speaker Change: Bringing them access to the open Internet could you just talk about do you have to go to market muscle there what needs to change from investment perspective, just to service those types of advertisers. Thank you so much.

Yeah.

Speaker Change: We really do believe in that opportunity the accessibility of the open ecosystem is not very accessible and I think that is probably the number of advertisers is in the tens of thousands.

Speaker Change: Perfect. Thank you guys. Thanks, Jason.

Speaker Change: Thank you and our next question will be from Matt Conlan.

Speaker Change: From JMP.

Speaker Change: Matt Your line is open.

Speaker Change: If you look at Google search or meta or anything in social there in the $5 million to $10 million Mark all of them.

Okay.

Speaker Change: Thank you so much for taking my questions. My first one is just on Iris as well just wanted to think about just the contextual signals that you guys are receiving from that and may be incorporating that into your AI better is there is there opportunity there to just enhance your bidding capabilities with the signal that you're receiving from Iris.

Speaker Change: But I would say that the if you look at their revenue I would imagine that it's probably it's really it's not the local pizza shop per se that's driving their business I believe it's a lot of the e-commerce direct to consumer companies interested in your own experience in those channels. So we think that's probably mobile apps and we think that that's that's a.

Speaker Change: Absolutely one you mentioned it with AI bidding.

Speaker Change: Really if you today when we receive a signal, let's say from a certain.

Speaker Change: The meat of the opportunity.

Speaker Change: But why would they not if theyre, having success and social short short form videos, we absolutely believe that they will have success in CTV.

Speaker Change: App from a content owner, we're just receiving predominantly the app name and maybe we might get genre or publisher, what's known as publisher provided metadata, but you don't really know what the show is you don't know what it's about I don't know the actors in it you don't know the setting you don't know the mood.

Speaker Change: Iris the Arris acquisition as part of that certainly by NII as part of that to make.

Speaker Change: The buying tools more accessible easy to use.

Speaker Change: And so with IRS, they really enable they enable all that data to flow through about the content when a market or if you think of a publisher like Disney I think of the size of their library, you don't know exactly with video you may be buying and with IRS you know much more about the content. So if a marketer.

Speaker Change: So absolutely we think that we can deliver that we don't believe that we're going to have a 100000.

Speaker Change: Sales reps, calling on these businesses, we need to do all of this through automation and we think we can do that yes, and basically that same viand AI interface that customers are interacting with we do think the local pizza store, we'll be able to use that interface to <unk>.

Speaker Change: The example, I gave earlier around bass pro shops knows that this video which is about fishing.

Speaker Change: Does that performs extremely well the next time I see that same video file that same iris I'd come across very well, they're then able to build that up because they understand the performance increase that that video actually provide them. This is where we really see as a huge opportunity for CTV content owners, but also for the marketers and one other point too.

Speaker Change: Generation and target an AD campaign that will propel their business, so huge opportunity towards small and mid size. We do have some work to do continually on buying AI, making it more robust and we think we'll complete that at some point next year.

Speaker Change: Thank you.

Speaker Change: No.

Speaker Change: Thanks, Matt and <unk> and as a reminder, if you'd like to ask a question. During this time. Please use the raise hand function located at the bottom of your screen.

Speaker Change: We really this is in partnership with the content owners and we believe that CTV is the open ecosystems greatest channel and we want to bolster these constant owners to help them create better AD products to rival those of the walled gardens in search and social. So this is why we think this acquisition is really important yeah and just on the quest.

Speaker Change: I will now open up the line of Chris <unk>.

<unk> from UBS.

Speaker Change: Hi, Chris.

Speaker Change: Hey.

Speaker Change: Great. Thanks for taking my question here.

Speaker Change: And just to follow up on that around bidding it's not just driving price down. It's also driving price up where theres a lot of customers for that advertiser to be able to make sure. We're engaging those audiences too. So we see that yes, it could drive pricing down, but we're just seeing more bids in general when this content signal is in place.

Speaker Change: Maybe two questions for me first would just be kind of as we think about the growth that you've delivered here very strong in <unk> and just the idea of buying outgrowing the broader digital space and 25 in that broader digital space growing somewhere high single digits low double digits like how should we think about the potential for.

Speaker Change: Great. That's Super helpful. And then my second one is just on vine AI and you guys talking about that unlocking the long tail of advertisers.

Speaker Change: <unk> to outgrow CTV, which could be growing more in the high teens, and 25, which would still be a deceleration from where you're at.

Bringing them access to the open internet.

Speaker Change: In <unk>, and where you're guiding for <unk> or sorry <unk>.

Speaker Change: Just talk about do you have to go to market muscle there what needs to change from Investor perspective, just to service those types of advertisers. Thank you so much.

Speaker Change: Yeah. Thanks, Chris.

Speaker Change: One I think that we do believe we're going to continue to grow above market and I would say because we are a DSP theres only four real dsp's in market two of which are buy side only we happen to be one of those so you're definitely seeing customers understanding the value and the importance of having a bias that only platform I would say that's one.

Speaker Change: Yeah.

Speaker Change: We really do believe in that opportunity the accessibility of the open ecosystem is not very accessible.

Speaker Change: <unk> is probably the number of advertisers is in the tens of thousands.

Speaker Change: If you look at Google search or meta or anything in social there in the $5 million to $10 million Mark all of them.

Speaker Change: <unk>.

Speaker Change: Two we think that that we continue to grow above market in CTV, because we have better products to market and we think.

Speaker Change: But I would say that the if you look at their revenue I would imagine that it's probably it's really it's not the local pizza shop per se that's driving their business I believe it's a lot of the e-commerce direct to consumer companies interested in your own experience in those channels. So we think that probably mobile app and we think that that's that.

Speaker Change: The continuation of that is going to be with Iris, we think thats important.

Speaker Change: But I think what most people Mrs.

Speaker Change: The amount of money moving over from linear is that's what the projected growth of CTV is but we believe there is a second derivative or another wave of growth that CTV is enjoying in certain platforms that have better products and offer the measurement to prove that its driving incremental sales for our advertise.

Speaker Change: The meat of the opportunity.

Speaker Change: But why would they not if theyre, having success and social short short form videos, we absolutely believe that they will have success in CTV.

Speaker Change: And we do that really well, which is why I believe that we're continuing to grow at the rates. We are in CTV and we think that that'll continue in 'twenty five yes, and just to add to that Chris I think what this quarter proved is on a tough comp last year of north of 20% growth, we were able to put up north of 20% growth again and I do see that continue.

Iris the Arris acquisition as part of that certainly by NII as part of that to make.

Speaker Change: The buying tools more accessible easy to use.

Speaker Change: So absolutely we think that we can deliver that we don't believe that we're going to have a 100000.

Speaker Change: Sales reps, calling on these businesses, we need to do all of this through automation and we think we can do that and basically that same via an AI interface that customers are interacting with we do think the local pizza store, we'll be able to use that interface to <unk>.

Speaker Change: <unk> for the foreseeable future.

Speaker Change: Got it very helpful and maybe just one on the expense side I think you had talked last quarter about low double digit to low teens growth in 'twenty five is that still the right way to be thinking about that considering the acquisition and with faster expense growth in <unk>, Josh So the guidance I mean.

Speaker Change: The acquisitions, certainly will add some overheads and next year you are talking about 225, but we still remain committed to.

Speaker Change: Having overhead or non <unk>.

Speaker Change: non-GAAP operating expenses grow slower than CSD next year. So I think the estimate that we gave you last quarter is a little bit higher.

Speaker Change: Thank you.

Matt: Thanks, Matt.

Speaker Change: And as a reminder, if you'd like to ask a question. During this time. Please use the raise hand function located at the bottom and Chris screen.

Speaker Change: Basically because of the acquisition, but we.

Speaker Change: We think we can more than offset that with incremental 60.

I will now open up the line of Chris <unk>.

Speaker Change: <unk> from UBS.

Speaker Change: Super helpful. Thank you nice quarter.

Hi, Chris.

Thanks, Chris.

Thank you and our next question comes from or Ato munis.

Speaker Change: Hey, Greg.

Speaker Change: Thanks for taking the question here.

Speaker Change: Raymond James.

Speaker Change: Maybe two questions for me first would just be kind of as we think about the growth that you've delivered here very strong in <unk> and just the idea of buying outgrowing the broader digital space in 'twenty, five and the broader digital space growing somewhere high single digits low double digits like how should we think about the potential for <unk>.

Speaker Change: Hi, Thank you for taking my question.

Speaker Change: You guys can hear me okay.

Speaker Change: Yes.

Speaker Change: I wanted to ask you about the contributions for what was a very strong political season, particularly for CTV. So maybe you can talk about that and any dynamics you might have experienced from political ads maybe crowd in the market.

Speaker Change: To outgrow CTV, which could be growing more in the high teens, and 25, which would still be a deceleration from where you're at in <unk>, and where you're guiding for <unk> or sorry <unk>.

Given all the taxes to pullback on CTV spending in <unk>.

Speaker Change: Thanks, Chris.

Speaker Change: Well, one I think that we do believe we're going to continue to grow above market and I would say because we are a DSP theres only four real dst's <unk> market two of which are buy side only we happen to be one of those so you're definitely seeing customers understanding the value.

Speaker Change: Then there's another one for Larry.

Speaker Change: Maybe you can help us.

Speaker Change: Or give us some guidance on how to think about it.

Speaker Change: <unk> said all aspects too as we look into <unk>.

I'm coming off of a very strong political season things. Thank you.

Speaker Change: And the importance of having a bias that only platform I would say that's one.

I'll take that as the topline mark about political effect.

Speaker Change: Two we think that that we continue to grow above market in CTV, because we have better products to market and we think.

Speaker Change: We definitely saw a rise in Cts.

Speaker Change: States, yes definitely in the swing states. It did have an impact in the market.

Speaker Change: The continuation of that is going to be with Iris, we think thats important.

Speaker Change: Aye.

Speaker Change: I don't believe we had any material pullbacks from advertisers who wanted to send it out on at least not during the quarter maybe.

Speaker Change: But I think what most people Mrs.

The amount of money moving over from linear as that's what the projected growth of CTV is but we believe there is a second derivative or another wave of growth that CTV is enjoying in certain platforms that have better products and offer the measurement to prove that its driving incremental sales for our advertisers.

Speaker Change: Maybe that happened above us and we just didn't see but.

Speaker Change: We didn't have any.

Speaker Change: Didn't see any impact of that.

Speaker Change: We.

I think that our our expectation for political somewhat modest we slightly out of that.

Speaker Change: It's not a huge.

Speaker Change: And we do that really well, which is why I believe that we're continuing to grow at the rates. We are in CTV and we think that that will continue in 2005.

Speaker Change: Area for us, we'd like to continue to do better and we're certainly going to.

Speaker Change: Put our best.

Put our best efforts add to it but we had modest expectations for it and we slightly out of those.

Speaker Change: And just to add to that Chris I think what this quarter proved is on a tough comp last year of north of 20% growth, we were able to put up north of 20% growth again, and I do see that continuing for the foreseeable future.

Speaker Change: And your second question Mauricio was it around the impact of political in Q1.

Speaker Change: Well coming off of a strong political season are there any seasonal aspects.

Speaker Change: Got it very helpful and maybe just one on the expense side I think you had talked last quarter about low double digit to low teens growth in 2005 is that still the right way to be thinking about that considering the acquisition and with faster expense growth in <unk>.

Speaker Change: Into consideration.

Speaker Change: Not really I mean political impacted the second half primarily typically we do about political is maybe 1% of CX two year as we said in the second half both with Q3 actual and the Q4 guide we think it's a little it's a little bit over 3%. So I don't think its going to impact Q1 growth.

Speaker Change: I mean, the acquisitions certainly will add some overhead some next year youre talking about 225, but we still remain committed to.

Speaker Change: There'll be a little bit of a delta in the second half of 'twenty five but at most that's 2% of <unk>. So.

Speaker Change: Having overhead or non <unk>.

Speaker Change: non-GAAP operating expenses grow slower than <unk> next year. So I think the estimate that we gave you last quarter is a little bit higher.

Speaker Change: We think we can more than offset that as we move through 2025.

Speaker Change: Basically because of the acquisition, but.

Speaker Change: Great.

Speaker Change: We think we can more than offset that with incremental 60.

Speaker Change: Thank you and that concludes today's Q&A portion.

Speaker Change: Super helpful. Thank you nice quarter.

Speaker Change: Alright, thanks, everyone for joining this quarter's earnings call and I'd like to thank the buying team for a fantastic quarter in the third quarter and we look forward to talking to everybody again soon thank you.

Speaker Change: Thanks, Chris.

Speaker Change: Thank you and our next question comes from Raytheon Munis.

Speaker Change: From Raymond James.

Speaker Change: Hi, Thank you for taking my question can you guys hear me okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Wanted to ask you about the contributions for what was a very strong political season, particularly for CTV.

Speaker Change: Maybe you can talk about that and any dynamics you might have experienced.

Speaker Change: Political ads may be proud in the market.

Speaker Change: Sure.

Speaker Change: Hum.

Speaker Change: Often times is to pull back on CTV spending in <unk> and then one for Larry.

Speaker Change: Maybe you can help us.

Speaker Change: Or give us some guidance on how should we think about this you said all aspects into as we look into <unk>.

Speaker Change: I'm coming off of a very strong political season things. Thank you.

I'll take that as the topline mark about political effect.

Speaker Change: We definitely saw a rise in CPM.

Speaker Change: And the swing states, yes definitely in the swing states. It did have an impact in the market.

Speaker Change: I don't believe we had any material pullback from advertisers who wanted to send it out on at least not during the quarter.

Speaker Change: Maybe that happened above us that we just didn't see but we didn't we didn't have any.

Speaker Change: We didn't see any impact of that.

Speaker Change: I think that our our expectation for political with somewhat modest we slightly out did that.

Speaker Change: It's not a huge.

Speaker Change: Area for us, we'd like to continue to do better and we're certainly going to.

Speaker Change: Put our best.

Speaker Change: Put our best efforts add to it but we.

Speaker Change: We had modest expectations for slightly at that dose.

Speaker Change: And your second question Mauricio was it around the impact of political in Q1.

Speaker Change: Coming off of a strong political season are there any.

Speaker Change: Seasonal aspects.

Speaker Change: Into consideration.

Speaker Change: There'll be a little bit of a delta in the second half of 'twenty five but at most that's 2% of <unk>. So we.

Speaker Change: We think we can more than offset that as we move through 2025.

Great.

Speaker Change: Thank you and that concludes today's Q&A portion.

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